Bryan, Garnier & Co advises Groupe Auchan in connection with the negotiation of a franchise agreement in India with Max Hypermarket

Bryan, Garnier & Co advises Groupe Auchan in connection with the negotiation of a franchise agreement in India with Max Hypermarket

News published on September Friday 14, 2012
Share on

Paris, September 14th 2012 - Bryan, Garnier & Co, the independent pan-European Investment bank focusing on growth companies, announces the signature of a franchise agreement for the development of a hypermarket business between Groupe Auchan and Max Hypermarket, one of the major independent hypermarket operator in India.

The existing stores of Max Hypermarket will be rebranded "Auchan" and will operate under the franchise agreement. The franchise partnership is aimed at reinforcing the business objectives of both organizations in providing customers with best of value, choice and experience.

The franchise route is a first step for retailers to prepare potential development as and when regulations permit foreign ownership. Organised retail contributes less than 10% of total retail sales in India leading to an under-developed supply chain, especially in fresh food.

Thanks to their large size and wide product assortment, hypermarkets will promote investment in logistics and traceability improvement and lead to greater product diversity. Robust development in organised retail is also expected to create job opportunities across the value chain.

Once foreign investment will be allowed in multi brand retail, the development of hypermarkets will contribute to logistics and traceability improvement, to price stability which will favorably impact inflation, to greater product diversity and security, and to job creation.

While bringing its incomparable experience of successful developments in BRICs such as in China and Russia, Auchan is ideally positioned to benefit from India's high potential market thanks to its agreement with Max Hypermarket, Indeed, India's middle class growth, rapid urbanization, increased demand for wider food assortment and convenience, and high saving levels, make it one of the more attractive markets for retailers despite challenges.

Marc Goudemand, Principal at Bryan, Garnier & Co said: "Getting involved with an established hypermarket operator will help Groupe Auchan to acquire knowledge about India much faster and add to this wealth of knowledge by leveraging their successful experiences in other emerging geographies."

François Arpels, Managing Director at Bryan, Garnier & Co added: "This transaction demonstrates our ability to advise and to deliver strong value to our clients in the execution of complex transactions with India".

Gaurav Juneja, Director at Bryan, Garnier & Co, India added: "With its strong and expanding domestic consumption base, multi brand retail is a critical sector in India, currently going through an evolutionary phase. A transaction like this is an important milestone and brings global expertise to the sector which is expected to have a trickle down effect throughout the value chain".

Bryan, Garnier & Co acted as exclusive financial adviser to Groupe Auchan.      

 

For more information please contact:

François Arpels / Managing Director - Corporate Finance / +33 1 70 36 57 43 / farpels@bryangarnier.com

Marc Goudemand / Principal - Corporate Finance / +33 1 70 36 57 15 / mgoudemand@bryangarnier.com

Gaurav Juneja / Director – India / +91 11 41 32 60 62 / gjuneja@bryangarnier.com

About Auchan Group

The Auchan Group is the world's 12th largest food retailer. It operates in 12 countries and employs 269,000 employees. It is structured into 5 core businesses: hypermarkets, supermarkets, retail real estate (Immochan), banking (Banque Accord) and e-commerce. In 2011, Auchan Group reached a consolidated revenue excluding taxes of 44.4 billion euros, 55% coming from outside France.

About Max Hypermarket India

Max Hypermarket India Private Limited was incorporated in the year 2004. The company currently operates 13 hypermarkets across India. The average hypermarket size is 50,000 sq. ft. and has been set up based on international best practices in design, layouts and fixtures. The company ensures that the needs of the consumers are met by providing localised product offerings, while maintaining international standards of retailing. The stores and back end facilities ensure the highest standards of food safety.

Max Hypermarket is also the winner of the Coca Cola Golden Spoon Award for the Most Admired Food & Grocery Retailer of the Year in India - Large Formats, for two successive years (2011 & 2012).

About Bryan, Garnier & Co

Bryan, Garnier & Co is an independent investment bank specialized in European Consumer/Retail, TMT, Healthcare and Renewable Energies growth companies. Bryan, Garnier & Co is positioned in three activities: Equity Research & Brokerage, Asset Management and Corporate Finance.

With more than 150 professionals based in London, Paris, New Delhi, New York and Geneva, Bryan, Garnier & Co combines the range of services and the expertise of top-tier investment banks with the level of attention to clients of a boutique.

Through its corporate finance practice, Bryan, Garnier & Co has became a leader in advising European growth companies on strategic finance transactions such as mergers & acquisitions, equity capital market, LBOs and private placement over the last three years.

Bryan, Garnier & Co is authorized and regulated by the Financial Services Authority (FSA) in the United Kingdom, and is member of London Stock Exchange and Euronext, Alternext ListingSponsor, and is active on all European capital markets.

The Essentials

Everything you need to know about investment banking dedicated to growth
Stay Informed
Get our news
Join our Team
Bryan, Garnier & Co is always looking for talent in all our divisions, at all levels
Explore our opportunities